The calculations below outline how an intrinsic value for
MasterCraft Boat Holdings
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
MasterCraft Boat Holdings's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
MasterCraft Boat Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

MasterCraft Boat Holdings's earnings are expected to grow by 18.7% yearly, however this is not considered high growth (20% yearly).

MasterCraft Boat Holdings's revenue is expected to grow by 11.7% yearly, however this is not considered high growth (20% yearly).

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
MasterCraft Boat Holdings's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Leisure
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
MasterCraft Boat Holdings
has a total score of
5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Health

A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).

The boxes below represent the relative size of what makes up
MasterCraft Boat Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

MasterCraft Boat Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

MasterCraft Boat Holdings's long term commitments exceed its cash and other short term assets.

Balance sheet

This treemap shows a more detailed breakdown of
MasterCraft Boat Holdings's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.

Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

TerryMcNew

COMPENSATION

$1,421,030

AGE

56

TENURE AS CEO

6.6 years

CEO Bio

Mr. Terry D. McNew has been the Chief Executive Officer and President of MCBC Holdings, Inc. since August 2012 and serves as its Director. Mr. McNew has been the Chief Executive Officer and President of MasterCraft Boat Company, LLC (formerly MasterCraft Boat Company, Inc.) since August 2012. Mr. McNew has 31 years of experience in the boating industry with executive roles at both Brunswick Corp. and Correct Craft. He has more than two decades of extensive knowledge in the boating industry. He joined MasterCraft in August 2012 after serving as Executive Vice President of Brunswick Corporation’s recreational boat group, where he was in charge of manufacturing, product development, and engineering and quality systems. Mr. McNew served as the Executive Vice President of Product Development & Engineering Manufacturing and Quality - Sea Ray, Bayliner and Meridian Brands of Sea Ray Boats, Inc. and Brunswick Boat Group since October 2009. Mr. McNew served as Senior Vice President of product development and engineering (PD&E). He spent more than 20 years in the recreational boating industry with Sea Ray, beginning his career at Brunswick's PD&E facility in Merritt Island, Fla. He then progressed steadily through several key manufacturing roles before ultimately assuming the position of Sea Ray vice president - manufacturing in 2001. He served as President and Chief Executive Officer of Correct Craft Boats in Orlando from 2004 to 2006. Mr. McNew returned to Brunswick in 2006. Mr. McNew held increasingly senior positions at Sea Ray, starting there in 1988 as a laminator and chop gun operator and ultimately leading manufacturing and PD&E. Mr. McNew received his BSBA in Economics from the University of Central Florida' College of Business Administration and is certified as a Six Sigma Black Belt from the University of Tennessee.

CEO Compensation

Terry's compensation has been consistent with company performance over the past year.

Terry's remuneration is about average for companies of similar size in United States of America.

Management Team Tenure

Average tenure and age of the
MasterCraft Boat Holdings
management team in years:

6.4

Average Tenure

56

Average Age

The average tenure for the MasterCraft Boat Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.

Management Team

Terry McNew

TITLE

President

COMPENSATION

$1M

AGE

56

TENURE

6.6 yrs

Tim Oxley

TITLE

VP, CFO

COMPENSATION

$599K

AGE

59

TENURE

6.6 yrs

Tim Schiek

TITLE

President of NauticStar

COMPENSATION

$557K

AGE

49

Mike Schmidt

TITLE

Chief Information Officer

TENURE

0.8 yrs

Jay Povlin

TITLE

Vice President of Global Sales & Marketing

TENURE

6.2 yrs

Charlene Hampton

TITLE

Vice President of Human Resources

Board of Directors Tenure

Average tenure and age of the
MasterCraft Boat Holdings
board of directors in years:

3.2

Average Tenure

56

Average Age

The tenure for the MasterCraft Boat Holdings board of directors is about average.

News

Simply Wall St News

(NASDAQ:MCFT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

So shareholders might well want to know whether insiders have been buying or selling shares in MasterCraft Boat Holdings, Inc. … MasterCraft Boat Holdings Insider Transactions Over The Last Year. … In the last twelve months, the biggest single sale by an insider was when President Terry McNew sold US$149k worth of shares at a price of US$29.76 per share

saw a decent share price growth in the teens level on the NASDAQGM over the last few months. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Today I will analyse the most recent data on MasterCraft Boat Holdings’s outlook and valuation to see if the opportunity still exists

To keep it practical, we'll show how MasterCraft Boat Holdings, Inc.'s (NASDAQ:MCFT) P/E ratio could help you assess the value on offer. … Based on the last twelve months, MasterCraft Boat Holdings's P/E ratio is 9.25. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

How Much Did MasterCraft Boat Holdings, Inc.'s (NASDAQ:MCFT) CEO Pocket Last Year?

How Does Terry McNew's Compensation Compare With Similar Sized Companies. … is worth US$364m, and total annual CEO compensation is US$1.4m. … We think total compensation is more important but we note that the CEO salary is lower, at US$415k

I've been keeping an eye on MasterCraft Boat Holdings Inc (NASDAQ:MCFT) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe MCFT has a lot to offer.

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

What does MasterCraft Boat Holdings Inc's (NASDAQ:MCFT) Balance Sheet Tell Us About Its Future?

While small-cap stocks, such as MasterCraft Boat Holdings Inc (NASDAQ:MCFT) with its market cap of US$525m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … since poor capital management may bring about bankruptcies, … I believe these basic checks tell most of the story you need to know.

What Does MCBC Holdings Inc's (NASDAQ:MCFT) Share Price Indicate?

led the NasdaqGM gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine MCBC Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Company Info

Description

MasterCraft Boat Holdings, Inc., through its subsidiaries, designs, manufactures, and markets recreational powerboats. The company operates in two segments, MasterCraft and NauticStar. It offers sport boats and outboard boats, which are used for water skiing, wakeboarding, wake surfing, and fishing, as well as general recreational boating. The company offers boats and boat trailers; and replacement and aftermarket boat parts and accessories, as well as manufactures pontoon boats ranging from 20 to 29 feet. It sells its boats through a network of independent dealers in North America and internationally. The company was formerly known as MCBC Holdings, Inc. and changed its name to MasterCraft Boat Holdings, Inc. in November 2018. The company was founded in 1968 and is headquartered in Vonore, Tennessee.

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